Startups in a New Ukraine: How IT Industry Helps Ukraine Restart Its Economy

by Alfonso Matthews Junio 16, 2016, 16:43
Startups in a New Ukraine: How IT Industry Helps Ukraine Restart Its Economy

Ukrainian startups keeps getting popular worldwide. Despite the continuing financial crisis, the IT industry keeps showing positive results, especially in the sector focused on foreign users. IT startups are mainly acquired by American and European giants.

Now startups are seen as cost-effective investments. The starting capital is relatively small while startups are often sold for millions (or even billions) of dollars. Even hundreds of thousands of dollars may seem a modest investment compared to the potential outcome.

IT-investors can name plenty of super successful startups:

Y Combinator, Looksery funded Petcube project, with around $5 million invested in it. Later on, it was purchased by Snapchat for $150 million. Google purchased Viewdle for $45 million. IT investors showed great interest in buying Canadian company Mobify. Jeapie is rumored to have been sold for $10 million. Still, some minor startup investments can be profitable as well while being a decent way to build up a fortune quickly.

What’s new on the Ukrainian startup market?

In May 2016, The Independent released an article titled «Startups at the heart of a new Ukraine» and mentioning a new Ukrainian startup named . International investors are said to be getting increasingly interested in this startup especially as the the project founder Denis Minin, a famous sportsman, the founder of an international organization Street Workout, has been continuously rejecting any offers to sell the company since day one.

Experts say the sportsman is planning to join the list of those who have created successful online startups from scratch. We wonder if he ever gets an offer to make him change his mind.

In 2016 some Ukrainian startups have already impressed the community with new, creative, and innovative ideas.

Why are Ukrainian startups getting more popular?

Experts say the reasons why Ukrainian startups are so popular boils down to this:

1. Low development costs coupled with skilled experts. This is explained by low household income in Ukraine and unstable national currency.

2. Ukrainian investors avoid tangible assets since they are too risky to invest. Instead, they invest in creating startups and sell them abroad later.

3. Developed IT industry and intensive startup development and promotion.

4. High level of expectations from Ukrainian startups as investors tend to back them.

Still, all of that requires a decent idea, good enough to attract millions of users.

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